Is Starbucks' Valuation Too Hot to Handle?

In this edition of The Motley Fool's "Ask a Fool" series,¬†Motley Fool One¬†analyst Jason Moser takes a question from a Fool reader who asks: " What's your Foolish take on Starbucks (NASDAQ: SBUX  ) ? What about their breathtaking P/E? How about Realty Income (NYSE: O  ) ?" Jason talks about the number of growth opportunities that Starbucks still has today from the acquisitions of Evolution Fresh, La Boulange, and Teavana to the addition of drive-thrus in its new stores. Further, Jason clarifies why Starbucks has such a high P/E ratio today and how investors should view the company. While Realty Income is a REIT that can generate higher dividend income, Jason also says why he's not sold on the long-term prospects of the company today.

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Related Tickers

9/29/2016 2:42 PM
O $67.91 Down -0.71 -1.03%
Realty Income CAPS Rating: ****
SBUX $53.25 Down -0.74 -1.36%
Starbucks CAPS Rating: ****